Protecting your ability to work: what matters when you take out a policy

Your ability to work pays for your life. Occupational disability insurance (Berufsunfähigkeitsversicherung) steps in when illness or an accident keeps you out of your job for a longer period. Here you can read what to look out for.

Uygar Vural, SIGNAL IDUNA insurance in Cologne · Updated: 13 October 2026

Why cover matters

Common causes of occupational disability are mental illness and problems with the back and joints. This can happen to anyone, including people who work in an office.

The state usually only pays the reduced earning capacity pension (Erwerbsminderungsrente). You only receive the full pension if you can work less than three hours a day in any kind of job. It is usually much lower than your previous income. People who have only just started working or who are self-employed often have no entitlement at all.

What the insurance pays

Depending on the policy, the insurer pays a monthly benefit if you are expected to be unable to do at least 50 percent of your most recent job for at least six months. The benefit is paid for as long as this lasts, at most until the policy ends. During this time, you usually do not pay any premiums.

What to look out for

• Benefit amount: together with your other income, the benefit should cover your fixed costs. Your net income is a useful guide. Bear in mind that health and long-term care insurance contributions and, where applicable, taxes are still deducted from it.
• Term: ideally until your state retirement pension starts, usually at 67, so that there is no gap.
• Any-occupation clause (abstrakte Verweisung): good policies waive this clause. The insurer then cannot point you to a job that you do not actually do.
• Increase option (Nachversicherung): depending on the plan, you can increase the benefit on certain occasions without new health questions, for example when you marry, have a child or get a pay rise. Deadlines and upper limits apply.

Answer the health questions honestly

Before you take out the policy, the insurer asks about your health. Answer these questions completely and correctly. Incorrect information can mean that the insurer does not pay when you need it.

With pre-existing conditions, a policy is often still possible, for example with a surcharge or an exclusion. We clarify this together before you apply.

Starting early pays off

The younger and healthier you are when you take out the policy, the easier acceptance is and the lower the premium usually is. An early start can pay off especially for career starters, apprentices and students.

This article gives a general overview. Exactly what is covered is set out in the terms and conditions of the plan. I am a tied insurance agent (gebundener Versicherungsvertreter) and exclusively arrange products of the SIGNAL IDUNA Group.